US retail giants are shifting the burden of shipping costs onto their Chinese suppliers as freight rates continue to rise amid ongoing trade tensions. According to a report by the South China Morning Post, US retailers are now demanding that Chinese exporters absorb more of the shipping expenses as part of a broader strategy to manage the financial impact of the trade war.
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Traditionally, American retailers covered the full cost of shipping goods from China, leveraging their relationships with global shipping firms to keep expenses manageable. However, this dynamic is changing as companies like Stage Group, a prominent garment manufacturer based in Zhejiang, report that they have been responsible for 60% of the logistics costs for US-bound shipments since May. This shift in cost distribution is not limited to shipping alone. Chinese factories are also being pressured to cover a significant portion of US tariffs, with some suppliers having to take on up to 66% of these fees, as indicated by data from the IndexBox platform.
These developments highlight the growing financial strain on Chinese exporters as they navigate the complexities of international trade amidst escalating tariffs and freight costs. The pressure from US retailers is intensifying as they seek to mitigate the economic impact on their operations, leaving Chinese suppliers to bear a larger share of the costs.
